China is dropping USD 'like a boss' all over the world, snatching up assets left, right, and yes even center. As an added bonus, for China, there really is no risk. They're trying to get out of the U.S. treasury market and alongside with the BRICs they denounced the IMF and USD as a global currency. China, obviously, would be aware the U.S. can not actually pay off their debt obligations so they are "diversifying their investments" as one might say.

China's western growth model is getting demolished by the European crisis and it's showing. However, unlike the west, China's company's assets are also the state's assets. We may look at the Chinese state owned companies coming in and buying up everything as cute and all "capitalism" like, but the motives of a state and the motives of a solely profit based company are quite different. We must be aware that behind the profit motive of any Chinese company, there is a political one - one which may far outweigh the "economic losses" a company may incur in the process. We must realize that these companies more and more have political power, they will have the lobbying power western oil companies have now. The Chinese state will be directly able to lobby the Canadian government, as "Canadians".

China doesn't care about quarterly profits. Their companies might appear too, but that's just the ante of playing the capitalism game with us. As the true corrupt state of the western banks and markets are revealed, China will begin pressing for even more international financial power and definite influence in whatever is to become the new reserve currency.

I still believe that behind the scenes, Canada is pressing for some sort of alliance with China. The price of admission for a western ally in such an alliance I imagine would be quite high, resources or not, which could explain why we're allowing so many Chinese acquisitions despite the obvious national security risks. The U.S. fiscal cliff looms (again) and I don't really think the Congressional debate show is fooling any foreign investors anymore. They do need to walk on eggshells, the U.S. military is still quite "influential", indeed it is the only reason the USD is still the international currency today but I find it hard to believe most nations don't already have a Plan 'B' ready, if not enacted.

Click here to recommend this post on progressivebloggers.ca and help other people find this information.

Richard Fantin is a self-taught software developer who has mostly throughout his career focused on financial applications and high frequency trading. He currently works for eQube gaming systems.

Nazayh Zanidean is a Project Coordinator for a mid-sized construction contractor in Calgary, Alberta. He enjoys writing as a hobby on topics that include foreign policy, international human rights, security and systemic media bias.